Bangkok land prices were increased for 3.5% in end 2014 and would be expected to be 3.0% increase in 2015. The highest land price is in Siam Square, Chi Lom and Ploen Chit at Baht 1.75 million per sq.wah or Baht 437,500 (USD 13,258) per sq.metre or USD 1,232 per sq.feet. This price would be Baht 1.9-2.0 million next year.
Dr.Sopon Pornchokchai, President of the Agency for Real Estate Affairs who has conducted the surveys of land prices in Thailand since 1994 disclosed his findings as follows:
1. Land prices in 2014 were increased for 3.5% from 2013. This was a slight increase. During 2012 to 2013, land prices were increased for 4.6%. This implies the slowing down of the economic growth.
2. In the history, land prices were increased substantially during 1985 to 1996 for 33 times. However, during 1998 to 2000, land prices were decreased for 23%. Since 2001, land prices have steadily been increased until today.
3. After the 1998-2000 crisis, the highest increase was during 2004 to 2005 (5.7% per annum) and the lowest increase was 2.9% in 2009 during the world economic crisis and after a coup d'etat in Thailand.
4. It is expected that land prices in end 2015 would be an increase of 3% In 2015, the economy of Thailand would be of slow growth. SMEs business, exports and other economic indicators would be down this year. Hence, real esate, as a dependent variable to the economy at large would be of limited growth.
5. During the period of 16 years (1998 to 2014), the total increase in value was 84% or almost double the prices. It should be mentioned that land prices in the city was increased for 158%; whereas, prices outside the city or in the suburbs were increased for only 69-89% This was due to the fact that there existed mass transit system in the hub of the city. There were few new infrastructure developments in the fringe.
6. In details, during the past five years (2009 - 2014), land prices were increased for 55%. It was 75.8% in the inner-city areas; whereas, the increases in the outskirts of Bangkok were 39.9-49.9%. Particularly, in the Central Business District (CBD), an average increase was 75.8%. This shows that mass transit in the hub of the city would be a major factor for land price increase.
7. Although the overall average increase was 3.5% in 2014; however, land parcels along the mass transit system were increased more than the average. It was 8.5% for land parcels along the BTS mass transit. 8.5% was the average for land parcels along the MRT mass transit as well. It was even 9.8% for the purple line to Bang Yai.
8. Land parcels along the BTS at Siam, Chid Lom and Ploen Chit stations were among the highest in prices at Baht 1.75 million per sq.wah or Baht 437,500 (USD 13,258) per sq.metre or USD 1,232 per sq.feet. This price would be Baht 1.9-2.0 million next year. The highest land prices in Phuket and Samui were Baht 450,000 per sq.wah (USD 317 per sq.feet) and Baht 300,000 per sq.wah (USD 211 per sq.feet).
9. Land parcels along the BTS at Nana and Asoke stations were valued at Baht 1.7 per sq.wah (USD 1,197 per sq.feet). Land prices above were in the Bangkok retail centres. Whereas, in the financial centre of Silom, an average land price was Baht 1.5 million per sq.wah or USD 1,056 per sq.feet).
10. The lowest land price was Baht 2,500 per sq.wah or USD 7.04 per sq.feet. This prices had been stable for years. In 1996, it was valued at Baht 3,500 per sq.wah or USD 9.9 per sq.feet. The decrease was because there was no infrastructure plans in this area.